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CBOT Wheat Futures Hit Six-Week High Ahead of USDA Supply Report
Chicago Board of Trade (CBOT) wheat futures climbed to a six-week high in early trading Friday, with market participants adjusting positions ahead of a crucial monthly crop report from the U.S. government.
Price Action
The rally was seen across the wheat complex, with most contracts rising between 12 and 14 cents per bushel, according to Investing.com.
- CBOT September soft red winter wheat was last up 13-1/4 cents at $6.33 per bushel.
- K.C. September hard red winter wheat gained 15-3/4 cents to trade at $6.70 per bushel.
- Minneapolis September spring wheat rose 9-1/2 cents to $6.48-1/2 per bushel.
USDA Report Anticipation
The primary driver for the gains is the market's expectation for the U.S. Department of Agriculture (USDA) report, scheduled for release at 12 p.m. EDT. An analyst poll indicates that the USDA is expected to lower its estimate for 2026-27 U.S. wheat ending stocks to 714 million bushels.
AdThis would mark a notable decrease from the 744 million bushels forecast by the agency in its June report, signaling tighter domestic supplies.
Global Factors
Adding to supply concerns, the European grain trade association Coceral recently reduced its soft wheat production forecast for the European Union and Britain by 2%, attributing the cut to adverse heat conditions.
Traders also remain watchful of any potential escalation in the Russia-Ukraine war. Both nations are major grain exporters, and any disruption to Black Sea trade routes could have a significant impact on global commodity markets.